FDIC, Online and Utah - Community Banking Brief

Rakuten files third application for FDIC insurance

CFPB Monitor

JANUARY 25, 2021

Per the Utah Department of Financial Institutions website, Rakuten Bank America’s application for a Utah ILC charter was received on July 26, 2019 and remains pending. . Rakuten’s first FDIC deposit insurance application was filed in July 2019, and was withdrawn in March 2020. based bank, Rakuten Bank America.

FDIC

FDIC Utah America Financial Technology

SoFi’s Bank Charter Has Almost No Chance, Former SEC Chairman Says

Bank Innovation

SEPTEMBER 18, 2017

The charter, submitted to the State of Utah last June, would give the online lender the ability to collect deposits insured by the […].

Utah

Utah Online Security FDIC

Today In Payments: COVID-19 Triggers Job Losses; JPMC First Big Bank To Shutter Branches As Virus Spreads

PYMNTS

MARCH 19, 2020

Also, Square won a banking license for an industrial bank in Utah. FDIC Approves Square for Banking License. The Federal Deposit Insurance Corporation (FDIC) granted Square a banking license to operate a de novo industrial bank in Salt Lake City. Coronavirus Triggers Job Losses, Reduced Hours.

FDIC

FDIC Utah Payments Mobile

Webinars

Back to Basics with Reconciliations

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SoFi Officially Files For A Bank Charter Of Its Own

PYMNTS

JUNE 13, 2017

Which means it really doesn’t come as all that huge a surprise that as of June 6th, SoFi had applied for a new (de novo) bank charter according to the FDIC. Officially SoFi is looking for an industrial loan charter under the name SoFi Bank in Utah. SoFi has confirmed the news. The bank will offer no other products and services.”.

FDIC

FDIC Utah Millennials ATM

Banks Fighting SoFi’s Banking Charter

PYMNTS

JUNE 20, 2017

The action comes a week after the FDIC announced that digital lender SoFi had applied to the state of Utah for a special banking charter known as an ILC. Ten years ago Walmart to launch in Utah, where many ILCs are based, and was shut down.

Utah

Utah Indiana America Community

OppFi files complaint to block “true lender” challenge by California Department of Financial Protection and Innovation

CFPB Monitor

MARCH 15, 2022

In 2019, California enacted AB 539 which, effective January 1, 2020, limited the interest rate that can be charged on loans of $2,500 to $10,000 by lenders licensed under the California Financing Law (CFL) to 36% plus the federal funds rate.

California

California Innovation Utah West Virginia

California court rejects OppFi’s attempt to block DFPI’s “true lender” challenge to loans made through bank partnership

CFPB Monitor

OCTOBER 6, 2022

Unless it settles, it creates a risk to the viability of bank model online lending that is structured like OppFi’s Program. It would be helpful if the FDIC were to submit an amicus brief supporting OppFi’s position regarding federal preemption of California usury law under Section 27(a) of the FDI Act.

California

California FDIC Analysis Utah

Call It Alt-Credit Or POS Lending, ‘Buy Now, Pay Later’ Just Got Bigger

PYMNTS

JULY 14, 2020

Utah-based FuturePay has consistently appeared in PYMNTS’ top 5 alternative credit apps, with its offer of flexible monthly payments for consumers and up-front settlement for merchants. Klarna also launched its new “Klarna: Swedish for smooother shopping” campaign in June. The account comes with 1.30 stores for Google Pay and Apple Pay users.

Lending

Lending FDIC Minneapolis Utah

Why The ICBA Is Fighting Industrial Loan Charters For FinTechs

PYMNTS

OCTOBER 17, 2017

An industrial bank is an FDIC-insured depository institution that is generally subject to the same banking laws and regulations as any other bank charter type, with the important exception of the Bank Holding Act of 1956. All industrial banks are chartered in Utah – and there are only 17 such charters issued, 15 of which are currently active.

Industry

Industry Fintech FDIC Community Bank

Bankers Tell Me Their Top Industry Game Changers

Jeff For Banks

APRIL 19, 2015

I teach Bank Profitability for the Washington, Utah, and Montana Bankers'' Associations EDP programs. Utah has many Industrial Loan Companies (ILC''s), which are FDIC supervised financial institutions that can be owned by commercial firms not regulated by a federal banking agency, like a utility company.

Industry

Industry Montana Utah Washington

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

CFPB Monitor

OCTOBER 10, 2019

A group of small businesses and their individual owners have filed a putative class action lawsuit in a New York federal district court against online lender Kabbage, Inc. According to the complaint , Kabbage entered into the scheme with Celtic Bank, a foreign state-chartered bank in Utah, which has no maximum rate limit for commercial loans.

Massachusetts

Massachusetts California New York Utah

California Department Of Financial Protection And Innovation files cross-complaint alleging OppFi is “true lender” on loans made though bank partnership and seeking penalties of “at least $100 million”

CFPB Monitor

APRIL 19, 2022

OppFi’s complaint alleges that because the Bank and not OppFi is making the Program Loans and the Bank is a state-chartered FDIC-insured bank located in Utah, the Bank is authorized by Section 27(a) of the Federal Deposit Insurance Act to charge interest on its loans, including loans to California residents, at a rate allowed by Utah law regardless (..)

California

California Innovation Utah United States

Community Banking Brief

Rakuten files third application for FDIC insurance

SoFi’s Bank Charter Has Almost No Chance, Former SEC Chairman Says

Webinars

Trending Sources

Today In Payments: COVID-19 Triggers Job Losses; JPMC First Big Bank To Shutter Branches As Virus Spreads

Webinars

SoFi Officially Files For A Bank Charter Of Its Own

Banks Fighting SoFi’s Banking Charter

OppFi files complaint to block “true lender” challenge by California Department of Financial Protection and Innovation

California court rejects OppFi’s attempt to block DFPI’s “true lender” challenge to loans made through bank partnership

Call It Alt-Credit Or POS Lending, ‘Buy Now, Pay Later’ Just Got Bigger

Why The ICBA Is Fighting Industrial Loan Charters For FinTechs

Bankers Tell Me Their Top Industry Game Changers

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

California Department Of Financial Protection And Innovation files cross-complaint alleging OppFi is “true lender” on loans made though bank partnership and seeking penalties of “at least $100 million”

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